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I would like to congratulate you for seeking guidance and assistance before entering the Forex market. Most new participants have their vision clouded by Greed and jump in head first. They quickly lose all their money and claim that the Forex market does not work or is a scam.
I have been active in the Forex market for over 5 years. I think that one of the most important bits of advice I can give you is to focus on risk management and money management.
Hedge strategies performed quite well for us in the past. Recent changes to trading rules now make hedges a little trickier to implement.
Our trading team has been using a number of automated forex robots lately with some very decent results. The thing that I personally like about forex robots is that they take the elements of Greed and Fear out of the equation. Trades are entered and exited programatically with
no guessing or hoping involved.
The robots also tend to give us our life back. Forex robots are monitoring our positions and entering and exiting trades 24 hours a day. We can be working, sleeping or drinking mojitos in Costa Rica … the robots keep taking care of business for us.
The knock on Forex robots is due to the fact that many people are swayed to use Forex robots because of all the splashy advertising and sales pages that they see. They have false expectations thinking that double digit results occur everyday and that they can double their money in a week. This is not even close to the truth.
Anyone entering the Forex market has to realize that where there is opportunity for gain there is also opportunity for loss. It is how one manages the risk that is the key to success.
Well before starting with forex trading one should be very clear about what it is and how it works, then only can one be successful in Forex market. So let’s start with:
What is Forex Trading? Forex Trading, Currency Trading, FX, Foreign Exchange are terms that have the same common meaning, that is trading of the world’s many currencies. A currency trade can be thought of as simultaneous buying and selling of currency. Forex Trading has a very wide scope. The Forex Market has daily trading that amounts to $ 3 trillion. Forex Trading is quite similar to Stock trading except the fact that there is no central market where you can trade. Trading is done on the interbank market which can be thought of as an Over the Counter market.
Now let us start with the basics of Forex Trading. In Forex Trading a trade is a buying and selling of a currency simultaneously. Currency combinations that are used in a trade are known as a cross. Majors are the most common currency crosses that are traded and these are EURUSD, USDJPY, USDCHF and GBPUSD. Spot market is the most important Forex Market and it is known so because here the trades are settled immediately on the spot.
On thing that most people do not known about in Forex trading is the concept of Forward Outrights. In forward outrights the trade is completed immediately but there is need to calculate an interest as you have opted to trade on a future date. This interest may work for or against you in cases where you have a lot of time delay in your forward outright. For example if you trade between USD and NOK where you borrow money in US (where interest rate is low) and trade in Norway (where interest rate is high) you could get a positive rate differential that could get you more money. But you may be charged interest if you have a negative interest differential.
Another very important concept when it comes to trading in Forex is that of Trading on Margin……………..
To read the rest of the article you can go to the source mentioned below as yahoo does not allow posting answers that are these long here…..
There are a lot of books on it. Go to the book store, go to the currency trading section, look for the best sellers. Trust me, reading one of those books will give you about 1000% more knowledge than expecting a single sentence answer here.
Forex trading is about yourself. How you react to the market movement.
To understand the market movement, you need to learn technical analysis which is reading the chart to analyse for opportunity to enter and take profit.
check Economic data release date and time from forexfactory.com
Understand the market sentiment. Currently is US dollar weakness to continue.
go babypips.com to learn basic forex
You must set your own forex trading schedule, your trading plan, your goal to learning forex trading.
Forex trading is more about yourself. Setting all these items up is not the most important.
I learned forex from my working experience in one of the big US bank. I was sent to learn forex. I came from future trading industry. I provide forex commentary and recommendation at my work. I have client called to ask about my forex view. I thought i must be able to trade forex and make profit. I was wrong. i lost and lost. Not because I don’t know forex, it is because I don’t know myself. forex is psychology game. You must understand yourself, set a system to make it a win. Trading plan(enter level, risk level, and reward level)
, trading schedule ( from 9pm-11pm Tuessday – Thursday only), trading opportunity ( market trading breakout), trading mood (anxious to trade or looking for opportunity& being paitent)
I only achieve my success in 2008. Turn demo account $ 100,000 into $ 200,000 in 6 month. This is because i set a goal to achieve 100% profit in year 2008 and commit to doing it. Never give up till I achieve my goal. Therefore, your mindset must be in ready mode. You must have goal, written trading plan, trading schedule, beside knowing forex trading strategies.
You have to start trading. Open a demo trading account. Oanda.com has demo trading account that has no expiry date.
gft.com has phone sms service to alert you on the level reach.
If you are a beginner, i suggest you to use Marketiva, which is a very good platform to start trading with and very easy to use.
Marketiva gives you 5$ real to start trading so you don’t have to deposit and if you made profit from it you can cash out, this is why it’s very good for beginners. Their platform is very easy to use and they have support during trading hours.
I have been using robots lately and have been quite successful with them so might be worth having a look for you. I am not making a fortune but a nice steady income. Remember however that you might lose sometimes so invest as much as you can afford to lose.
Forex trading is a fairly safe investment vehicle. Until now real estate has always been considered as a very stable investment option, simply because they weren’t making more of it anymore. But look what has happened in recent times. Property prices have headed south and continue to be there. But this is not so in the currency market. There is always someone willing to buy or sell a position in the currency markets. It is this liquidity in forex markets that one has to take advantage of to make or book profits.
In some forex technical trading strategies resistance and support levels are identified as entry and exit points. The key is to find the strategy that suits you the best and then try to improve your odds.
But if you want to improve your odds you must bear in mind the following.
1. Never over trade. That is because overtrading increases the odds of your loosing more money. Why is that? You could no doubt make big profits, but the fact remains due to the highly leveraged nature of the accounts you could loose big too. So over trading is a double edged sword.
2. It would be a wise idea to trust the forex charts. After having your strategy in place, set your exit points and let it carry on from there. But make it a point to study the charts at the end of the day. Then again stick to your strategy. As a matter of fact, charts should indeed chart out your strategy.
3. Have patience. Having patience is not only a rare virtue but a most important one in forex trading. You must have patience in the sense that you must allow your strategy to do the talking. That is the importance of patience in forex trading.
4. Finally test your forex investment strategy on a continual basis. Fine tune it if the occasion demands. A few losses here or there will not make much of a difference. But consistent losses call for a reworked strategy. In any case, prudent updating of your forex investment strategy from time to time would always be a good idea.
5. Remember no forex strategy or plan could ever be one hundred percent accurate. You should accept it as a fact. Nevertheless by and large, you could take it that forex strategies that reckon with technical analysis and using stop/loss points with every order are generally considered the best in view of their success rate. But this is just a point of view. It is not a hard and fast rule.
The points listed above will greatly help you in your trading activity if interpreted correctly.
Apart from the points listed above, you should know how to handle the psychological barriers that affect every trader decision. If you know that and take the right decisions it will put the odds in your favor.
September 5th, 2011 at 9:48 pm
Read http://www.newstockslive.com/
September 5th, 2011 at 9:58 pm
I would like to congratulate you for seeking guidance and assistance before entering the Forex market. Most new participants have their vision clouded by Greed and jump in head first. They quickly lose all their money and claim that the Forex market does not work or is a scam.
I have been active in the Forex market for over 5 years. I think that one of the most important bits of advice I can give you is to focus on risk management and money management.
Hedge strategies performed quite well for us in the past. Recent changes to trading rules now make hedges a little trickier to implement.
Our trading team has been using a number of automated forex robots lately with some very decent results. The thing that I personally like about forex robots is that they take the elements of Greed and Fear out of the equation. Trades are entered and exited programatically with
no guessing or hoping involved.
The robots also tend to give us our life back. Forex robots are monitoring our positions and entering and exiting trades 24 hours a day. We can be working, sleeping or drinking mojitos in Costa Rica … the robots keep taking care of business for us.
The knock on Forex robots is due to the fact that many people are swayed to use Forex robots because of all the splashy advertising and sales pages that they see. They have false expectations thinking that double digit results occur everyday and that they can double their money in a week. This is not even close to the truth.
Anyone entering the Forex market has to realize that where there is opportunity for gain there is also opportunity for loss. It is how one manages the risk that is the key to success.
Best wishes for your long term success.
Paul
September 5th, 2011 at 10:39 pm
Well before starting with forex trading one should be very clear about what it is and how it works, then only can one be successful in Forex market. So let’s start with:
What is Forex Trading? Forex Trading, Currency Trading, FX, Foreign Exchange are terms that have the same common meaning, that is trading of the world’s many currencies. A currency trade can be thought of as simultaneous buying and selling of currency. Forex Trading has a very wide scope. The Forex Market has daily trading that amounts to $ 3 trillion. Forex Trading is quite similar to Stock trading except the fact that there is no central market where you can trade. Trading is done on the interbank market which can be thought of as an Over the Counter market.
Now let us start with the basics of Forex Trading. In Forex Trading a trade is a buying and selling of a currency simultaneously. Currency combinations that are used in a trade are known as a cross. Majors are the most common currency crosses that are traded and these are EURUSD, USDJPY, USDCHF and GBPUSD. Spot market is the most important Forex Market and it is known so because here the trades are settled immediately on the spot.
On thing that most people do not known about in Forex trading is the concept of Forward Outrights. In forward outrights the trade is completed immediately but there is need to calculate an interest as you have opted to trade on a future date. This interest may work for or against you in cases where you have a lot of time delay in your forward outright. For example if you trade between USD and NOK where you borrow money in US (where interest rate is low) and trade in Norway (where interest rate is high) you could get a positive rate differential that could get you more money. But you may be charged interest if you have a negative interest differential.
Another very important concept when it comes to trading in Forex is that of Trading on Margin……………..
To read the rest of the article you can go to the source mentioned below as yahoo does not allow posting answers that are these long here…..
September 5th, 2011 at 10:53 pm
There are a lot of books on it. Go to the book store, go to the currency trading section, look for the best sellers. Trust me, reading one of those books will give you about 1000% more knowledge than expecting a single sentence answer here.
September 5th, 2011 at 11:00 pm
Forex trading is about yourself. How you react to the market movement.
To understand the market movement, you need to learn technical analysis which is reading the chart to analyse for opportunity to enter and take profit.
check Economic data release date and time from forexfactory.com
Understand the market sentiment. Currently is US dollar weakness to continue.
go babypips.com to learn basic forex
You must set your own forex trading schedule, your trading plan, your goal to learning forex trading.
Forex trading is more about yourself. Setting all these items up is not the most important.
I learned forex from my working experience in one of the big US bank. I was sent to learn forex. I came from future trading industry. I provide forex commentary and recommendation at my work. I have client called to ask about my forex view. I thought i must be able to trade forex and make profit. I was wrong. i lost and lost. Not because I don’t know forex, it is because I don’t know myself. forex is psychology game. You must understand yourself, set a system to make it a win. Trading plan(enter level, risk level, and reward level)
, trading schedule ( from 9pm-11pm Tuessday – Thursday only), trading opportunity ( market trading breakout), trading mood (anxious to trade or looking for opportunity& being paitent)
I only achieve my success in 2008. Turn demo account $ 100,000 into $ 200,000 in 6 month. This is because i set a goal to achieve 100% profit in year 2008 and commit to doing it. Never give up till I achieve my goal. Therefore, your mindset must be in ready mode. You must have goal, written trading plan, trading schedule, beside knowing forex trading strategies.
3 part in trading
1) Psychology
2) Risk management
3) Trading strategies.
You have to start trading. Open a demo trading account. Oanda.com has demo trading account that has no expiry date.
gft.com has phone sms service to alert you on the level reach.
Start trading and learn forex.
All the best!
September 5th, 2011 at 11:13 pm
If you are a beginner, i suggest you to use Marketiva, which is a very good platform to start trading with and very easy to use.
Marketiva gives you 5$ real to start trading so you don’t have to deposit and if you made profit from it you can cash out, this is why it’s very good for beginners. Their platform is very easy to use and they have support during trading hours.
To open your account please visit http://www.marketiva.com/index.ncre?gid=3371
September 5th, 2011 at 11:44 pm
Hello,
I have been using robots lately and have been quite successful with them so might be worth having a look for you. I am not making a fortune but a nice steady income. Remember however that you might lose sometimes so invest as much as you can afford to lose.
September 6th, 2011 at 12:31 am
Forex trading is a fairly safe investment vehicle. Until now real estate has always been considered as a very stable investment option, simply because they weren’t making more of it anymore. But look what has happened in recent times. Property prices have headed south and continue to be there. But this is not so in the currency market. There is always someone willing to buy or sell a position in the currency markets. It is this liquidity in forex markets that one has to take advantage of to make or book profits.
In some forex technical trading strategies resistance and support levels are identified as entry and exit points. The key is to find the strategy that suits you the best and then try to improve your odds.
But if you want to improve your odds you must bear in mind the following.
1. Never over trade. That is because overtrading increases the odds of your loosing more money. Why is that? You could no doubt make big profits, but the fact remains due to the highly leveraged nature of the accounts you could loose big too. So over trading is a double edged sword.
2. It would be a wise idea to trust the forex charts. After having your strategy in place, set your exit points and let it carry on from there. But make it a point to study the charts at the end of the day. Then again stick to your strategy. As a matter of fact, charts should indeed chart out your strategy.
3. Have patience. Having patience is not only a rare virtue but a most important one in forex trading. You must have patience in the sense that you must allow your strategy to do the talking. That is the importance of patience in forex trading.
4. Finally test your forex investment strategy on a continual basis. Fine tune it if the occasion demands. A few losses here or there will not make much of a difference. But consistent losses call for a reworked strategy. In any case, prudent updating of your forex investment strategy from time to time would always be a good idea.
5. Remember no forex strategy or plan could ever be one hundred percent accurate. You should accept it as a fact. Nevertheless by and large, you could take it that forex strategies that reckon with technical analysis and using stop/loss points with every order are generally considered the best in view of their success rate. But this is just a point of view. It is not a hard and fast rule.
The points listed above will greatly help you in your trading activity if interpreted correctly.
Apart from the points listed above, you should know how to handle the psychological barriers that affect every trader decision. If you know that and take the right decisions it will put the odds in your favor.